Brazilian Regulator Clears Airline’s Initial Stock Offering

David Neeleman, the founder of Azul Linhas Aéreas Brasileiras, in 2008. Azul has sought to go public a number of times since 2013.CreditCreditPaulo Whitaker/Reuters

By Vinod Sreeharsha

April 7, 2017

RIO DE JANEIRO — Azul Linhas Aéreas Brasileiras, the Brazilian airline company started by the JetBlue founder David Neeleman, was cleared late Friday by the CVM, Brazil’s securities regulator, to proceed with an initial public offering.

The offering had been suspended by the Brazilian regulator on Thursday, just as the company was planning to price its shares. The regulator cited Azul’s use of marketing material for the offering that had not been approved.

But the regulator said late Friday that the company had now satisfactorily addressed its concerns, including removing a presentation from a website.

Azul expects to finalize pricing on Monday. Its shares will trade in São Paulo and on the New York Stock Exchange.

The market debut comes as Brazil’s market for new stocks is showing signs of life after several dry years.

Investors in Azul looking to sell shares in the offering include the Bozano Group of Brazil and the American private equity firm TPG Growth. The HNA Group of China and United Airlines also own stakes, which each acquired in 2015.

Azul, founded in Brazil in 2008 by Mr. Neeleman, an American born in Brazil, has previously sought many times to go public, dating back to 2013, but it had shelved those plans because of the country’s deteriorating economy.